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To clarify, Musescore doesn't use midi to store notation, it's used to send note information to VSTs for real time playback of the score. The new protocol sends the whole score in advance so better phrasing can be calculated.

That's pretty much the conclusion the video makes. The context here is playing scores with VST instruments, which use MIDI as an interface. The solution they found was to implement a new interface suitable to their needs and an orchestral plugin compatible with that interface.

If anything it speaks for MIDI that it is used for sheet music at all even if it was never intended to be.

MuseScore doesn't use MIDI to store sheet music; it only uses it for playback.

They're not trying to "piggyback on MIDI to store sheet music".

They are trying to use MIDI to play the sheet music, with their built-in sample player, and with third party orchestral VSTs, but with less information loss about expressiveness...